>> bob: form of binge drinking is dangerous. >> kimberly: i know. i'm just telling you, believe it or not this is the case. >> eric: very quickly. take a look at the picture michigan son. last year, he lacerated his spleen. had to take the whole year off. back on the slopes. a little videotape. i'm taping this with my iphone. with my glove off. then i barrel into him and he got mad at me. i was taping him. >> kimberly: see what happens. don't iphone video while sk skiing. >> we have to leave it there. thank you for watching. again, we'll have a great year. fun this year. thanks for watching. ♪ >> bret: major drama in the halls of congress.

this time it isn't fiscal cliff related. this is "special report." >> bret: good evening. i'm bret baier. to say the last three days on capitol hill has beenty multious, tense, packed with drama might be an understatement. toe was the last day of the 112 congress. it ended with shouting. this time, over the hurricane sandy aid bill. lawmakers from new york and new jersey call the lack of progress, failing to get t a vote, a disaster. shannon bream sorts it all out. >> the most disgraceful action i have seen since i have been here. >> disaster on top of a disaster. >> house republicans who

oppose quick package of the sandy aid bill are blasted from both sides of the aisle. pew lawmakers like california isssa say they would never vote for a bill with pet projects that having no to do with those devastated by the storm. >> the senate didn't do their job. they sent us pork and they left town. that was wrong. >> critics of the senate bill that was going to be broke on the separate house votes, $27 billion primary bill and $30 billion amendment says it was loaded with pork. they point to $600 million for the epa to is up profit climb change issues. 348 million for the national park service. $188 million for amtrak. among other things. >> i doubt that issa would say when california god forbid has an earthquake, or a fire, that relief to them is pork.

he has not. i'm infuriated. infuriated by comments like that. >> also infure rated is new jersey governor chris christie who says boehner refused to take his repeated phone calls last night as it was becoming apparent the sandy aid packal wouldn't go to a vote in the house. >> you sit around and delay and you give assurances to people things will be done and they're not, that is not doing your job. have some guts. put it up. vote yes or no and move on. >> this afternoon, boehner spoke with christie and he and cantor met with the congressional delegation from new york and new jersey and assured them sandy pack knowledge new form is the top priority. a package that peter king says will be pork free. this friday they will vote to get immediate resources to the national flood insurance program. there will be votes on the rest of the sandy aid package.

then it has to go to the senate. >> start all over. thank you. >> bret: you heard the phrase "fiscal cliff." then bill and law accompany the overused phrase fiscal cliff. some out the it as win, politically for taxpayers. the reality, according to both sides is really more of a mixed bag. president obama -- >> president obama campaigned on strengthening middle class. >> nonpartisan tax policy center estimate 77% of the american households wind l end up paying higher federal taxes because the 2% payroll tax holiday is not part of the package. impacts every worker.

even before the revelation, the legislation was unpopular with the house republicans and the speaker did not make the final pitch. that was left to the house ways and means chairman. >> making the tax cut permanent we are one step closer to comprehensive tax reform to strengthen the economy and create more and higher paycheck for american workers. >> many conservatives didn't like the package because it includes $6 # 0 billion in new tax hike with $15 billion in spending cuts. so the key to pass it was $172 of the votes in favor from the houseteam delivered by whip steny hoyer. >> compromise is not the art of perfection. by the definition, compromise has elements that neither side likes. but it also contains pieces both sides can embrace. >> among the pieces of the

plan. permanent tax cut for individuals under $400,000. permanent adjustment for the a terptive might be mum tax. delay the sequestration for two months. they voted for package and the majority leader cantor and mccarthy voted against it. the speaker showed leadership at a time when harry reid went home and went to bed and left it to the vice president. boehner was straight, honest with us ind lowed the regular process to occur. >> white house last friday. fox news confirmed boehner told reid to go "f" himself twice. after reid accused boehner of running the house like a dictatorship and being more concerned about saving his own job than cutting a deal. republican sources say it's likely it will only boost

boehner's stock with conservatives. bret? >> you cleaned that up a little bit, mike. what about the signing of the bill and the process here? >> we are told the bill arrived at 4:30 this afternoon. we understand president obama will electronically sign the bill. the first president to use the autotoe pen. the third time he is doing it. cleared by the council's office. >> bret: mike, thank you. if you want a breakdown of what is in the fiscal bill check out wendell goler's piece on the foxnews.com/specialreport. republicans hoping to pick up a legislative win after the fiscal cliff deal has been eyeing the debt ceiling as the next potential arena for spending cut fight. the president is not putting on his boxing gloves yet. chief white house

correspondent ed henry explains. >> just hours after popping up in the white house briefing room to tout a big victory -- >> tonight's agreement further reduces the deficit raising $620 billion in revenue. from the wealthiest households in america. >> president obama was at it again today. with a campaign style video sent out on obama-biden letterhead. even though the nonpartisan congressional budget office says the fiscal cliff deal will add $4 trillion to the national debt over the next ten years. >> any agreement we reach this week will redouse the deficit even more. asking the wealthiest 2% of americans to pay higher taxes for the first time in two decades. >> comparing this deal to a scenario where all the tax cuts expire. >> the failure to step up and do a big thing, he could have

brought leadership to the table. he didn't. now he wants to talk about cutting, spending. it's a joke. >> the president notes he tried to get a big deal with speaker john boehner. that would have had 1.2 trillion in cuts. the republican walked away. though the explosive debate over raising the debt ceiling in the weeks ahead gives boehner a company a new opportunity to change the sour taste republicans have over this weekend's deal. >> it runs up the long-term debt. you people that are kicking the can, give me the can. because what we are going to do is draw a line in the sand. and start demanding that you don't bring anything forward unless you have a spending cu cut. >> the president penalled to be open -- >> i am open to compromise. >> then he added he is not compromising on or negotiating about the debt ceiling. >> i will negotiate over many things. i will not have another debate with this congress.

over whether or not they should pay bills they racked up. >> the white house officials say the president has the position because the last debate was harm to feel the economy. republicans insist we can't afford to not have the debate when we're $16 trillion in debt. they believe this is the only weapon to force the president to cut more spending. bret? >> bret: ed henry live on the north lawn. thank you. stocks finished ahead today now. that the fiscal cliff teal is in the books. the dow added 308. the s&p 500 was up 36. the nasdaq closed ahead 93. get analysis now of the wall street reaction. and reaction from world markets to this fiscal cliff deal. from melissa francis. markets seemed relieved today. why? >> we saw the dow go up. mostly because the deal got done. they liked something rather

than nothing. the markets usually go up. if you look at the last couple of years since 2009, they have gone up between 1-3%. with or without a deal, in the normal range. at the end of the day when the dust settles a lot of people are already saying they don't think the market is going to like this. as much as it did today. we look at the story that is just developed here in the last few hours. moody's is out. credit rating saying in spite of what happened they think down the road it might be necessary to reduce credit rating on the united states. saying that it would cost more to lend to the u.s. that it is too risky right now. they didn't go far enough to solve the deficit problem. >> bret: for the long term look at the economy, you get a story from moody's and the other rating agencies look at this. if this up against the debt

ceiling fight that potentially we may have. if something big is not done you could have outrage. >> if something isn't done to control the deficit ratios that we are going to face another downgrade down the road. you look at people who are doing the math like moody's, who is nonpartisan. they are out there evaluating the risk of lending people money they say that j.p. morgan is out with a note to call it ten-year mirage. saying down the road it covers 6% of the gap. it doesn't sol tv problem as you explained. >> bret: as always, thank you. >> thank you. >> bret: president obama signs on to something with no fanfare. and no comments. trechtly contradicts how senator obama the candidate talked about the issue. we will tell you what it is later in the grapevine. up next, health update regarding secretary of state hillary clinton. [ ryon ] eating shrimp at red lobster

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>> bret: deadly violence in syriaed and shockingly high death toll in ongoing civil war. clashes have intensified an leland vittert has the latest. >> the chaos after a syrian air force strike captures the raw intensity of war. the wails of those who lost loveed up withs. then the explosion of a second missile strike. moments later, the adrenaline is still flowing, the camera men speaks. >> we were attacked trying to save others. suck attacks happen multiple times a day. this brings the death toll to 60,000.

trying to deny the regime po power, they continue the attack on air base in the north. the syrian opposition long begged for no fly zone. like the one nato enforced in libya 18 months ago. when it began 1,000 libyans died in the uprising and president obama said this. >> as president, i refuse to wait for the image of the slaughter in mass graves before taking action. >> nato attacks crushed libya's air force and many of the tanks acting as close air support for the rebel fighters in six months it took to take tripoli. the u.s. all but ruled out military intervention, pointing out that the far more sophisticated air it was system with the strong support from russia and iran.

>> lessons from libya are on everyone's mind. they feel they were steamrolled to allow military action against gaddafi. for u.s. allies the significance of the fighters against the rebels are concer concerned about trading a brutal dictator for failed state. >> bret: leland vittert, thank you. secretary of state hillary clinton treated for a blood clot in her head was seen outside for the first time in a long time outside the car there. she is still being treated at the hospital. correspondent molly henneberg has latest. >> it was a rough december for hillary clinton. until today, which is the last time we had seep her in a public capacity. december 7 at press conference in belfast northern ireland in a trip to europe. since then she suffered from what the state department calls a pretty vicious stomach

virus. severe dehydration and then a concussion and this past weekend a blood clot. today, state department spokeswoman victoria nuland said in off-camera briefing that clinton had been working from the hospital room. she has been talking to her staff including today. she has been quite active on the phone with all of us. the state department declined to make clinton's doctors available for question. although the medical team put out paper statement on monday the day after she was admitted to new york presbyterian hospital with a blood clot near her brain. to help dissol tv clot the medical team began to treat the secretary with blood thinners. she is making excellent progress and we're confident she will make a full recovery. earlier today, the state department said nothing had changed since monday. and defended the handling of the medical condition. newland responded, "i think we have been forthcoming including from her doctor's on the specific issues here."

her doctors also said in that statement on monday that the secretary has not suffered a stroke or neurological daniel as a result of the blood clot. >> bret: the health of another public figure is also in question tonight. hugo chavez is seeking treatment outside of his country. correspondent steve harrigan reports, venezuela's future and the political balance in latin america could hang in the balance. >> the official version of hugo chavez's condition after the fourth operation in cuba for undisclosed form of cancer is that the health is delicate. fully conscious and can carry on a conversation. the vice president went to havana to monitor the recover recovery. president? >> huge strength. >> greeted him with the left hand and squeezed me with strength as we talked.

>> the internet rumors he has fallen in a coma were nothing more than attacks on the government. but has not been seen or heard from in public more than three weeks ago. will he be able to attend the inauguration on january 10? if not, can they legally postpone it? the second question is what happens if chavez dies or incapacitated. according to the constitution, new presidential election would have to be called in 30 days. he named his vice president, one-time bus driver as successor. but there is no guarantee that the little now madero could win presidential election. >> bret: thank you. >> still ahead, bold threats from al-qaeda in yemen. but first, tax increases to deal with obamacare. stay tuned.

>> bret: sandy hook substitutes and families in newtown get a look at the new school today with open house in monroe. the children haven't gone to class since the mass shooting on december 14. f.b.i. says background check for gun purchases set a record in december. they recorded 23.8 million background checks that month. 48% increase over the last year. the tax man is coming in 2013 and he is wearing surge call scrubs. several tax increases took effect to pay for affordable

care act. including one that received some bipartisan concern. >> a new tax on the sale of most medical devices. >> it's a sales tax. >> 2.3% tax on virtually every medical device. you think of those as pacemakers but contact lenses, hearing aids. >> they make everything from seth scope to syringes to tongue depress sors to x-ray machine and prosthetics. >> the tax on societal sales, not profits. leading some to publicly object to the tax.

the senators heard about the risks. >> they laid off workers already. a company in michigan laid off 1,000 workers because of this medical device tax. >> many democrats including 18 democratic senators want the increase to be halted. many urged harry reid to find other ways to pay for the law. saying the medical industry >> we have seen too much venture capital go to europe, because the process moves faster. >> most of the companies are operating on 3-5% profit at the end of the day. >> if you took 2.3% tax on revenue to turn it to profit.

>> device on sales punish companies 80% of which it says has less than 50 employees. in a statement to fox news, mark lahey president of the medical device says it will arm innovation and job creation. over 98% of the industry is made up of the small businesses. many aren't profitable. this will eliminate tens of thousands of american jobs. >> president obama dismisses such concerns telling an interview that the device makers should recognize the benefit they will get when everyone has insurance. willing to do a little bit to make it happen. >> so far no, leak has been seen at the shell oil drilling ship that grounded awful alaskan island in new year's eve storm. on scene responders say it's

carrying 150,000 gallons of oil and say it appears stable. wait until you say the constitution is evil and should be thrown away? the newspaper prints a list of gun permit holders. you heard that story. then there is a backlash. we'll show you what happened next. grapevine is coming up.

>> bret: now fresh pickings from political grapevine. sunday "new york times" saws

op ed entitled let's give up on the constitution. wren by a professor of constitutional law at georgetown university. the piece opens up as the nation teeters at the edge of fiscal chaos, observers reach the conclusion that the american system of government is broken but no one blames the culprit. inanalysis tans on the constitution. he sets up a scenario where an official reaches judgment for good of the country. someone bursts in the room with new information. group of white property men dead for two centuries knew nothing of the present situation. illegally under existing law and thought it was fine to own slaves that might have tis agreed with this course of action. is it remotely rationale that the official should change his or her mind because of this

divinatoin. >> one wrote -- >> president obama signed five-year extinction to monitor overseas activity of foreign spies and terrorist. the foreign intelligence surveillance act or fisa allows the government to monitor overseas calls and e-mails without obtaining a court order. the law does not apply to americans. civil rights campaigners are dismayed saying it violates unreasonable search and says sure and they sound more like president obama before he took office. in 2005, senator obama said of the warrant lest wiretapping in the bush administration, "once we have more information we'll know to what degree our laws were circumvented but

regardless i am certain we can do the intelligence gathering we need to do without eroding the civil liberties the founding fathers intended. we told you they release names of the permit holders for weapons but the backlash was so much so they hired armed guards. protection was in response to flood of phone call and e-mai e-mails. police said there were no actual threat. al-qaeda and the iarabian peninsula is offering bounty for blood in yes men. herridge herridge has more on the -- catherine herridge has more on the threat. >> eight-minute video the al-qaeda affiliate offers gold for targeted killing of the u.s. ambassador to yesmen and equivalent of $25,000 for murder of soldiers. the threat are credible.

>> it's been al-qaeda in yesmen to make the most conservative effort to attack the united states. >> this is one of the most heavily fortified compound overseas overrun in september. not commenting on the increased security by the ambassador, the brief statement they operate in highly sensitive and difficult security situation. >> inclination should be to keep people there but be sure that the government can provide protection. if they fail we provide protection. >> memory group monitoring the islamic messages note this contains an issue of the military commander sup imposed oaf image of ambassadorsteins. >> they killed four americans which is tragic. we made it appear that it's

victory for al-qaeda. >> the drone strikes were identical to the drone campaign in pakistan. more evidence that the followers are making north africa and yemen the base of operation. >> this is a fox news alert. state department put out word hillary clinton was discharged from the hospital. the medical team advises she is making good progress on all fronts and confident she will make a full recovery from the blood clot in her skull. we were told she had not been released though we had photo of video of her outside the hospital today now. the state department put out official release she has been released from the hospital. fox all-stars weigh in on a

big fight op capitol hill next. ...so as you can see, geico's customer satisfaction is at 97%.

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i'm given no explanation. called at 11:20 last night by leader cantor and told that authority for the vote was pulled from the speaker. our delegation asked for a meeting with the speaker at the time and were refused. i walled the speaker four

times after 11:20 and he did not take my calls. there is no reason for the moment to believe anything they tell me think. have been telling me stuff for weeks. they didn't deliver. >> chris christie is upset the house did not come through with aid relief package, vote. but now there are talks today including boehner talking to the governor today, as well as other officials. there were meetings today. peter king talked about a way forward of the vote. >> between friday morning and january 15, we will bring in $60 billion this is necessary for new york, new jersey. an connecticut. i can speak for the new jersey delegation, extremely positive news. >> took a long time to get to that statement.

bring in the panel. bill kristol of "weekly standard." kirsten powers of daily beast and syndicated columnist charles krauthammer. you heard the members, both sides of the aisle, bill, just livid with how this went down. what is your take about the whole thing? >> the speaker was right to pull the bill. $60 billion is a tenth to the discremnary spending. this is not hundred billion dollars for urgent thing. the money is already spent for people who are, you know, sadly out of their homes or need immediate relief. you know what the state budget in new jersey is in $30 billion. so, according to governor christie, the house of representatives are supposed to pass this bill, no amendments, no taking a look at it and deciding this part should be prioritized over that part. speaker boehner is right to say do this in regular order

in two or three weeks. the huge majority of the money doesn't go out for months or a year or two. no tron rush it through before midnight op new yore's they. >> bret: kirsten, interesting, it seemed like the house majority leader cantor wanted this vote to happen. was pushing for it to happen. there seemed to be a divide between cantor and boehner about this. thoughts about that and how the whole thing developed? >> really hoping the republicans can work this out. amongst themselves. they are having a hard time. i don't understand what is going on. why they aren't able to work together. why you have two major republicans blasting them. chris christie and congressman king. the clip we saw was sedate. he wasn't sedate earlier to say all new yorkers stop giving money to the g.o.p. you just come here and take money from us. >> bret: as i said, took a long time to get to that point. >> it seems like something they should be able to work out. amongst themselves. it's not clear why it had to

come to this. maybe work through the process. why is this con ten insurance >> this is more of a flavor perhaps of the day. senator schumer. >> the senate passed a bill amazingly. with $60 billion. the house was about to follow suit. with a two-tier process that would have sent us the bill. >> this is one of the most sad but also most frustrating and angering theys i've spent in 37 years as a legislator. >> charles? >> i think all of them could use a therapist. republicans have had ad be week. actually a bad yore. last year. so perhaps we ought to cut him slack. i think there are two problems here. there is the process, which is

insane. 20 years ago, this was sort of, this would have been a huge bill. the idea it should be passed in the middle of the night with no debate or regular order, simply because people from one part of the country are demanding it, i think is insane. the second part is contact. there is an emergency, you dole it out with the quick debate. abbreviated debate. a third of it i think, only a third of is it spent in the first two years, give you one example. provision for amtrak for damage. the uninsured damage to amtrak is $30 million. they are asking for ten times as much which would be covering the operating expenses of amtrak. there is money for noa, the government agency that looks after hurricane. that is nice. is that emergency? all of this stuff, corruption of the whole process beginning

with the fiscal cliff negotiations. enormous money are thrown around private negotiations. voted on, the last segment with no debate. there ought to be a process here. yes, small amount. emergency, ship it out. have a debate on the rest. >> bret: this is attributable to the senate democratic leadership aid getting this from mike emanuel up on the hill. friday, the senate will seek consent on sandy aid package they expect to receive from the house friday. after this bill passes the house. they expect it overwhelmingly. that $9 billion is what we're talking about here. the first yore plus. of funding for the aid package. the second tranche, they are going to get more details before they decide how to proceed. >> so, amazing concession. chuck schumer is having a if it because there is no

$60 billion package. vote content two days from now for $9 billion. which is what theyed need to do immediate relief. fine. which will pass easily in both bodies. get speaker boehner credit for saving $51 billion. at least for now. there will be further appropriations but they may never get close to $60 billion. 20 years ago hurricane andrew hit in '92, severe in florida. went back to look up what the emergency bill to pay for that was. $7 billion. maybe sandy is ten times worse than hurricane andrew. i don't know. someone should take a close look at the money before they throw it out. >> to your point, give boehner credit. to hear anybody today on both sides of the aisle, they were slamming him. his name was mud on sound bites. how will it turn out? >> i am pro speaker boehner. he did take my call. they told him christie is on the other line, "i'm talking to bill kristol.

first things first." i think speaker boehner did well through this. i'm a fan of this and i think he will be re-elected as speak. they are taking out frustrations on him when he manages a difficult process. >> bret: kirsten? >> it's not pro or anti-boehner situation as much as why was it get to this point? why couldn't they have -- why so much pork in it. why so much spending that is meant to go and relieve the problem. >> who controls this -- >> it started in the senate. >> you be i'm saying this is the disflux of washington -- dysfunction of washington. they didn't know this was coming out of the senate? can people talk to each other? >> corruption of the word. idea of emergency. this will happen quickly and because earmarks are harder to

get. no one knows that passes in midnight. they have done the right thing to hold it up. >> next up, fiscal cliff deal, bill, soon to be law. and the debt ceiling fight to come. look what mommy is having. mommy's having a french fry. yes she is, yes she is. [ bop ] [ male announcer ] could've had a v8. 100% vegetable juice, with three of your daily vegetable servings in every little bottle.

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the agreement we reached will reduce deficit more to ask weltiest americans to pay higher taxes for the first time in two decades. >> the failure to step up and do the big thing when he could. he could have brought leadership to the table. he didn't.

>> the definition of compromise contains element that neither side likes but it also contains pieces both sides can embrace. we are one step closer to tax reform to strengthen the economy to create more and higher paycheck for american workers. >> bret: the fiscal cliff bill passed the house, passed the senate. overwhelmingly and now headed to the president for a signature. autopen signature since the president is in ohio. today, you saw at the beginning of the clip campaign style video in which he said that the bill soon to be law reduces the deficit. by asking the wealthiest household to pay more. back with the panel. the nonpartisan cbo says it adds $4 trillion to the national debt over ten years.

if you break it down on deficit, $300 billion per year. how is that possible? >> the president was only off by $4 trillion. well, what he is pretending that this is an isolated increase in taxes. nothing else happens. if that were true, you could say he reduced the debt. of course, it didn't. this is a huge increase in debt and deficit. keeping the taxes the way it were for a decade costs money. part of that is paying for that. >> the cbo says last night we

would have had expiration of the bush tax cut and replenished the treasury by money. piece is reduceded. if you exempt population from the increase of taxes then you vastly increase the debt because the treasury is now starved. so obama wants to say the tax cut and he has all kind of new language, which explains everything. in fact, last night he said in the victory lap he said oh,be yes, we may have to cut spending but we have to increase our invest in the education, r&d and road and bridges. investment is the liberal world for spending. no interest in outing can spending. he announced last night that i am a pre-clintonnian tax and

spend democrat and i will increase taxes more and increase spending. >> bret: do you bye that? >> i don't know is the truth. i talk to people about this. including democrats who are disappointed who are hoping there would be deficit reduction. they feel the political people won on the issue. that the policy people in white house really are serious about the deficit reduction. but political people saw a chance to dance on the republicans grave. they feel like they had a big win. so now will they try to do something as we come up against the next deadline? the fact that i can't answer the question or say that president obama affirmatively wants to reduce the deficit, suggests he probably doesn't. >> bret: bill, i know you were a proponent of the republicans signing on to the current dole. talk about the next fight. take a listen to what the president said last night in reaction to it.

>> while i will negotiate over many thingsly not have another debate with this congress over whether or not they should pay the bills that they have already racked up. through the laws they passed. >> i was disappointed in his demeanor and comment he made last night. wanting no fight over the debt ceiling. are you kidding me? >> republicans are ready for the fight. some of them. this is moody's investor service saying that will keep government on negative outlook because they don't see a forecast for deficit debt reduction in short-term. >> look, republicans should be ready to fight on debt ceiling. i don't think they should kid themselves as long as president obama is president. especially as well as while the democrats control the senate there is not appreciable reduction in deficit. the only way they would bebe is if there is faster economic growth. but the end of the day

president obama is happy running $1 trillion deficit for four years and happy to run the $1 trillion deficit next year. republicans might make a difference on the margin, but they need to think ahead of time. what are they going to ask for at the end of february when the tet ceiling and the sequest every run out and continuings out in march as well? they can ask for the spending cut. look at regulatory situation. we want the economic growth. at the end of the day, the president is not solving the debt and deficit problem. we can emeal rate the problem and the next president can get serious. economic growth and regulatory relief, postponing obamacare for a year or two. there are proposals to suggest that would be hard for president to say why isn't that a good idea in slowing economy? >> you think the president is going to sign on to slow obamacare? >> if he doesn't, fine. they can't implement it anyway. the democratic governors say they are not ready to set up exchanges. you'd do a favor to put it off a year or two.

save a lot of money. let the president explain it's so you are jeny thatm bah bam carrie go in effect -- it's urgent that obama care go in effect this year. we need to dit at all cost and regulatory burden on economy he doesn't care about. this president i'm afraid, we have to hope that markets will tolerate the debt, level of the debt and deficit for few more years because i don't think he will allow serious evident to reduce it. >> bret: that is it for panel. stay tuned to see and hear how you can have even more "special report" tonight. that's right.